PDIC sets criteria for GSIS Family Bank white knight

MANILA, Philippines – State-run Philippine Deposit Insurance Corp. (PDIC) has set the minimum capital requirement to qualify for the rehabilitation of the closed thrift bank arm of the Government Service Insurance System (GSIS).

PDIC said investors should have capital of at least P2 billion to meet the capital requirement for the rehabilitation of GSIS Family Bank.

The government-owned deposit insurer also requires investors to have a current asset to current liability ratio of 2:1 as well as unqualified audit opinion by independent auditors on the results of operations for the last three years.

PDIC has given interested investors until today to submit their letters of intent to rehabilitate the shuttered thrift bank and the required supporting documents.

According to the company, investors would be evaluated based on a set of pre-qualification criteria.

Banks that intend to participate in the rehabilitation of the GSIS Family Bank would be required to have a minimum capital adequacy ratio (CAR) of 12 percent before the acquisition, the capacity to infuse necessary capital to ensure that the 12 percent CAR requirement is complied with if it falls below 12 percent after acquiring GSIS Family Bank.

Furthermore, interested banks should also have a CAMELS composite rating of at least “3” with a management rating of not lower than “3.”

Interested investor-banks must have no findings of unsafe and unsound banking practices and are not under the Prompt Corrective Action framework of the Bangko Sentral ng Pilipinas.

PDIC added foreign banks are also allowed as long as these are authorized to operate as a bank in the Philippines.

On the other hand, non-bank corporations must be authorized to do business in the Philippines, profitable for the last three years of operation and compliant with foreign ownership limit/ceiling in a bank as stated in the General Banking Law.